Experience in various countries which have used PPPs to deliver transportation infrastructure projects for many years shows that the structure and delivery methods selected are highly dependent on a number of factors, including:
• Enabling statutes and regulations and underlying taxation policies;
• Capabilities of all members of the PPP to effectively execute their roles and
responsibilities in a transparent and accountable manner;
• Contract flexibility and a proactive approach to identifying and resolving issues that arise during project development and implementation phases;
• Contract terms for developing and sharing revenues produced by the PPP project; and
• Ability of financial markets to deliver financing structured to suit each PPP project.
These issues vary from country to country and should be addressed on a project-by-project basis. Particularly important are potential political risks where the local or national economy and/or political environment are less stable.
As more states have begun to undertake PPPs, lessons are being learned about the opportunities and challenges of PPP approaches and how impediments to implementing PPPs once thought to be insurmountable can be addressed. Moreover, the U.S. is entering a new phase in surface transportation investment, and PPPs are likely to be increasingly relied upon by state and local governments to finance transportation infrastructure improvements. Understanding the PPP landscape and the lessons learned from prior or current PPP projects are valuable for transportation agencies considering or beginning to use PPP approaches to project delivery.